Chap1 Mesures du PIB

Question 1

What are the 3 methods to find the GDP?

Answer 1

Value added, income, expenditure.

Question 2

What is the difference bw GDP and GNP?

Answer 2

GDP = market value of all the product produced within a country.
GNP (gross nat. product) = market value of the product produced by the resident of a country.

Question 3

Equation of the expenditure approach and name of its components?

Answer 3

Y = C + G + I + X - IM
Y= nominal GDP
C= consumption
I= investment
X= export IM= import

Question 4

What is real GDP?

Answer 4

Real GDP = nominal GDP/price level

Question 5

3 implications of the elephant curve (growth rate)

Answer 5

• middle classes grow the less
• elite (MEDC’s) gain the more
• significant growth rate of emerging countries.

Question 6

What is the Easterling paradox? Explain it.

Answer 6

According to his study, when the average income increase in a country, the average happiness remain still. explaination=> can’t compare over a long time period.

Question 7

How do economists confirm/infirm causation?

Answer 7

• diff and diff experiment
• natural experiment